Silvano Fashion Group

Annual Report • Feb 26, 2021

Company	AS Silvano Fashion Group
Type	Company Release
Category	Annual financial report
Disclosure time	26 Feb 2021 23:59:00 +0200
Attachments:	- SFG consolidated interim financial report for Q4 and 12m of 2020.pdf (http://oam.fi.ee/en/download?id=5237) - SFG 2020.a IVkv ja 12 kuu konsolideeritud vahearuanne.pdf (http://oam.fi.ee/en/download?id=5238)
Currency
Title	Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12 months of 2020
Summarized	Selected Financial Indicators selected financial indicators of	the Group	for 12 months of 2020
compared to follows:	12 months of 2019 and -------------------------------------------------------------------------------	31.12.2020 compared to 31.12.2019 were as
in thousands of EUR	-------------------------------------------------------------------------------	12m 2020	12m 2019 Change
Revenue Gross Profit		38 479 23 209	56 943 -32.4% 29 651 -21.7%
Operating profit		10 544	12 712 -17.1%
EBITDA		14 111	17 004 -17.0%
Net profit for the period		2 551	11 149 -77.1%
Parent company	Net profit attributable equity holders of the	2 231	10 663 -79.1%
Earnings per share (EUR)		0,06		0,30 -80.0%
	Operating cash flow for the period	6 356	15 086 -57.9%

Total assets	42 256	46 309	-8.8%
Total current assets	29 597	27 123	9.1%
Total equity attributable to equity holders of the Parent company	24 504	26 324	-6.9%
Cash and cash equivalents	8 980	5 152	74.3%
-------------------------------------------------------------------------------
Margin analysis, % -------------------------------------------------------------------------------	12m 2020	12m 2019 Change
Gross profit	60,3	52,1	15.7%
Operating profit	27,4	22,3	22.9%
EBITDA	36,7	29,9	22.7%
Net profit	6,6		19,6 -66.3%
Net profit attributable to equity holders of the Parent company	5,8		18,7 -69.0%
------------------------------------------------------------------------------- Financial ratios, %		31.12.2020 31.12.2019 Change
-------------------------------------------------------------------------------
ROA	5,3		22,2 -76.1%
ROE	9,3		38,9 -76.1%
Price to earnings ratio (P/E)	25,2		7,3 245.2%
Current ratio	3,4	2,7	25.9%
Quick ratio	1,3	0,8	62.5%

Financial performance

The Group`s sales amounted to 38 479 thousand EUR during 12 months of 2020, representing a 32.4% decrease as compared to the same period of previous year. Overall, retail decreased by 32.4%, measured in EUR.

The Group's gross profit during 12 months of 2020 amounted to 23 209 thousand EUR and decrease by 21.7% compared to previous year. The gross margin during 12 months of 2020 increased to 60.3%, from 52.1% in the respective period of previous year.

Consolidated operating profit for 12 months of 2020 amounted to 10 544 thousand EUR, compared to 12 712 thousand EUR in 12 months of 2019, decrease by 17.1%. The consolidated operating profit margin was 27.4% for 12 months of 2020 (22.3% in 12 months of 2019). Consolidated EBITDA for 12 months of 2020 decreased by 17.0% and amounted to 14 111 thousand EUR, which is 36.7% in margin terms (17 004 thousand EUR and 29.9% for 12 months of 2019).

Reported consolidated net profit attributable to equity holders of the Parent company for 12 months of 2020 amounted to 2 231 thousand EUR, compared to net profit of 10 663 thousand EUR in 12 months of 2019, net profit margin attributable to equity holders of the Parent company for 12 months of 2020 was 5.8% against 18.7% in 12 months of 2019.

Financial position

As of 31 December 2020 consolidated assets amounted to 42 256 thousand EUR representing decrease by 8.8% as compared to the position as of 31 December 2019.

Trade and other receivables decreased by 522 thousand EUR as compared to 31 December 2019 and amounted to 2 088 thousand EUR as of 31 December 2020. Inventory balance decreased 832 thousand EUR and amounted to 18 527 thousand EUR as of 31 December 2020.

Equity attributable to equity holders of the Parent company decreased by 1 820 thousand EUR and amounted to 24 504 thousand EUR as of 31 December 2020. Current liabilities decreased by 1 371 thousand EUR during 12 months of 2020.

Investments

During 12 months of 2020 the Group's investments into property, plant and equipment totalled 289 thousand EUR, in previous year same period 1 216 thousand EUR. Investments were made mainly into opening and renovating own stores, as well into equipment and facilities to maintain effective production for future periods.

Personnel

As of 31 December 2020, the Group employed 1 744 employees, including 500 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2019 there were 1 888 employees, including 503 people in retail operations.

Total salaries and related taxes during 12 months of 2020 amounted 9 854 thousand EUR (13 195 thousand EUR in 12 months of 2019). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 710 thousand EUR.

On June 30, 2020 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions.

• * The Meeting approved the 2019 Annual Report.
• * The Meeting decided leave the net profit undistributed and include the net profit of the financial year 2019 in retained earnings.
• * The Meeting decided: To annul Article 5.7 of the Articles of Association which includes: The public limited company may be represented in all legal transactions only by two members of the Management Board jointly. To approve the new Articles of Association of the Company.
• * The Meeting decided: To recall Toomas Tool, Mart Mutso, Risto Mägi, Triin Nellis and Stephan David Balkin from the Supervisory Board of SFG. To elect Toomas Tool as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Mari Tool as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Risto Mägi as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Triin Nellis as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Stephan David Balkin as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025.

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in thousands of EUR		Note 31.12.2020 31.12.2019
------------------------------------------------------------------------------- ASSETS
Current assets
Cash and cash equivalents			8 980	5 152
Current loans granted			2	2
Trade and other receivables	2		2 088	2 610
Inventories	3		18 527	19 359
Total current assets			29 597	27 123

Consolidated Statement of Financial Position

Non-current assets

Long-term receivables		249	334
Investments in associates		57	82
Available-for-sale investments		238	321
Deferred tax asset		1 032	905
Intangible assets		374	423
Investment property		1 018	869
Property, plant and equipment	4	9 691	16 252
Total non-current assets		12 659	19 186
TOTAL ASSETS		42 256	46 309
LIABILITIES AND EQUITY
Current liabilities
Current borrowings		400	0
Short-term finance lease obligations		2 121	2 362
Trade and other payables	5	5 583	6 899
Tax liabilities		675	889
Total current liabilities		8 779	10 150
Non-current liabilities
Deferred tax liability		500	14
Long-term borrowings		400	0
Long-term finance lease obligations		4 707	6 333

Long-term provisions 52 61

Total non-current liabilities 5 659 6 408

Total liabilities 14 438 16 558

Equity
--------	--	--

Share capital			6	3 600	3 600
Share premium				4 967	4 967
Statutory reserve capital				1 306	1 306
Revaluation reserve				355	355
Unrealised exchange rate differences				-19 748	-15 697
Retained earnings				34 024	31 793
Total equity attributable to equity holders of the Parent company				24 504	26 324
Non-controlling interest				3 314	3 427
Total equity				27 818	29 751
TOTAL EQUITY AND LIABILITIES				42 256	46 309
Consolidated Income Statement ------------------------------------------------------------------------------- in thousands of EUR					Note 4Q 2020 4Q 2019 12m 2020 12m 2019
------------------------------------------------------------------------------- Revenue	8	8 720	12 132	38 479	56 943
Cost of goods sold		-3 608	-5 138	-15 270	-27 292
Gross Profit		5 112	6 994	23 209	29 651
Distribution expenses		-1 940	-2 958	-8 548	-11 714
Administrative expenses		-911	-1 181	-3 779	-4 582
Other operating income		113	81	336	300
Other operating expenses		-200	-314	-674	-943

Currency exchange income/(expense)	214	144	-6 172	3 057
Other finance income/(expenses)	-83	-223	-428	-590
Net financial income	131	-79	-6 600	2 467
Profit (loss) from associates using equity method	4	5	1	8
Profit before tax	2 309	2 548	3 945	15 187
Income tax expense	-956	-1 163	-1 394	-4 038
Profit for the period	1 353	1 385	2 551	11 149
Attributable to :
Equity holders of the Parent company	1 231	1 371	2 231	10 663
Non-controlling interest	122	14	320	486
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) Consolidated Statement of Comprehensive Income	0,03	0,04	0,06	0,30
------------------------------------------------------------------------------- in thousands of EUR -------------------------------------------------------------------------------	Note 4Q 2020 4Q 2019 12m 2020 12m 2019
Profit for the period	1 353	1 385	2 551	11 149

Other comprehensive income (loss) that will be reclassified to profit or loss

in subsequent periods	-1 321	-1 035		-4 071	-699
Attributable to :
Equity holders of the Parent company	-913	-1 035		-4 051	-1 001
Non-controlling interest	-408	0		-20	302
Total comprehensive income (loss) for the period	32	350		-1 520	10 450
Attributable to :
Equity holders of the Parent company	318	336		-1 820	9 662
Non-controlling interest	-286	14		300	788
Consolidated Statement of Cash Flows
------------------------------------------------------------------------------- in thousands of EUR			Note 12m 2020 12m 2019
------------------------------------------------------------------------------- Cash flow from operating activities
Profit for the period				2 551	11 149
Adjustments for:
Depreciation and amortization of non-current assets				3 567	4 292
Share of profit of equity accounted investees				-1	-8
(Gains)/ losses on the sale of property, plant and equipment				9	50
Net finance income / costs				560	-2 467
Provision for impairment losses on trade receivables				20	45
Provision for inventories				202	263
Provision for long-term benefits				52	0
Provision for deferred tax asset				0	678
Income tax expense				1 394	4 038

Change in inventories	832	-1 714
Change in trade and other receivables	427	944
Change in trade and other payables	-1 512	114
Interest paid	-9	0
Income tax paid	-1 736	-2 298
Net cash from operating activities	6 356	15 086

Cash flow from investing activities
Interest received	13	12
Dividends received	46	0
Proceeds from disposal of property, plant and equipment	75	84
Proceeds from repayments of loans granted	0	6
Acquisition of property, plant and equipment	-289	-1 216
Acquisition of intangible assets	-110	-219
Acquisition of subsidiary net of cash acquired	-26	0
Net cash used in/from investing activities	-291	-1 333

Cash flow from financing activities Proceeds from borrowings 800 0 Repayment of finance lease -2 495 -2 988 Interest paid on finance lease -492 -636 Dividends paid -413 -7 710 Reduction of share capital 0 -10 800 Net cash used in/ from financing activities -2 600 -22 134

Increase in cash and cash equivalents	3 465	-8 381
Cash and cash equivalents at the beginning of period	5 152	13 603
Effect of exchange rate fluctuations on cash held	363	-70
Cash and cash equivalents at the end of period	8 980	5 152

Jarek Särgava AS Silvano Fashion Group Member of the Board Phone: +372 6845 000 Email: info@silvanofashon.com